102 FARM ACCOUNTING 



2. To bring all amounts into the two columns, one debit 

 and one credit, so that it can be seen more easily whether 

 the sum of the debits equals the sum of the credits. In 

 Illustration 22 the sum of the three debit columns is shown 

 as $5175 and the sum of the two credit columns as $5175. 

 Apparently, debits and credits of equal amount have been 

 made for all the transactions. The balance of cash is 

 shown in the explanation column on the first day of the 

 succeeding period as in the Illustration. 



The columns used in this problem were selected because 

 Labor was found to be the account with the most entries 

 in Illustration 21, while, of course, the cash and sundry 

 columns are essential in all cash journals. 



Optional Form for Cash Journal. Because of inability 

 to procure appropriate blank account books ruled for UM- 

 as a cash journal similar to the one shown in Illustration 

 22, another form is often used. This optional form has the 

 explanation columns to the left, followed by the several 

 money columns. Under this form 1 the money columns 

 may be grouped by accounts or by debits and credits. 

 When they are grouped by accounts the columns from left 

 to rijrlit mi^ht be as follows, usin^ the headings employed 

 in Illustration 22: Explanation space, Sundry Dr., Sun- 

 dry Cr., Cash Dr., Cash Cr., Labor Dr. When they are 

 grouped by debits and credits, the columns would be ar- 

 ranged in some such way as this: Explanation space, 

 Sundry Dr., Cash Dr., Labor Dr., Sundry Cr., Cash Cr. 



Under either of these optional methods, the general prin- 

 ciples of entering and posting transactions apply as ex- 

 plained for the cash-journal form in Illustration 22. That 



1 Blank books for use as cash journals may be obtained at stationery 

 stores. Books with six, eight, twelve, fourteen or eighteen columns 

 may be used, depending on the requirements of the business. A 

 twelve or fourteen column one is best for all general farming pur- 

 poses. 



